Question 1

Nearly half of states in the U.S.use the sale of tax lien certificates to manage defaulted property taxes.The certificates are auctioned to the public at:

Accepted Answer

A)  the face value of the property taxes due
B)  the assessed value of the home
C)  a discount from the face value of the property taxes due
D)  a premium of the assessed value of the home C

Question 2

A contemporary planning movement that explicitly advocates a traditional grid pattern of development designed to give pedestrian life priority over motor vehicles (e.g. ,including narrowed streets with houses close to the street and garage access through side alleys)is commonly referred to as:

Accepted Answer

A)  urban sprawl
B)  urban service area
C)  traditional residential planning
D)  new urbanism D

Question 3

A public planning movement that explicitly advocates a cul-de-sac hierarchy of development,an automobile oriented society,and separated land use is more commonly referred to as:

Accepted Answer

A)  urban sprawl
B)  urban service area
C)  traditional residential planning
D)  new urbanism C

Question 4

Zoning ordinances that tend to exclude lower income groups by large lot size,or that do not adequately provide low- and moderate-income housing are referred to as:

Accepted Answer

A)  special uses
B)  nonconforming uses
C)  conforming uses
D)  exclusionary uses

Question 5

Negative externalities can diminish a property's value by imposing costs on the community at large.In order to offset this detrimental impact,economists advocate "internalizing" these externalities by implementing:

Accepted Answer

A)  performance standards
B)  impact fees
C)  growth moratoriums
D)  planned unit developments

Question 6

A traditional zoning ordinance includes all of the following EXCEPT:

Accepted Answer

A)  Minimum setback requirements
B)  Minimum lot dimensions
C)  Provisions for special use districts
D)  Performance standards

Question 7

Special assessments are levied to pay for specific improvements that benefit a particular group of properties.All of the following characteristics of special assessments are true EXCEPT:

Accepted Answer

A)  They are considered ad valorem taxes.
B)  They are applied as pro rata charges.
C)  They are levied directly on the properties benefited.
D)  They are commonly used to finance streets,storm water systems,sidewalks,and other area improvements.

Question 8

While most real property in the United States is privately owned,government regulations limit private property use and therefore play an important role in the determination of property value.Proponents of government intervention argue that regulation is needed to address the unintended and unaccounted for consequences of one land user upon others,more commonly referred to as:

Accepted Answer

A)  incomplete information
B)  locational monopoly
C)  externalities
D)  urban sprawl

Question 9

When a zoning ordinance is revised,some existing land uses then fall outside the new zoning classification.These land uses are referred to as:

Accepted Answer

A)  special uses
B)  nonconforming uses
C)  conforming uses
D)  exclusionary uses

Question 10

State and federal control of land uses has increased greatly over the past 40 years due in part to an increased awareness of environmental hazards.Which of the following federal environmental control laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of abandoned and unregulated waste dumps?

Accepted Answer

A)  Clean Water Act
B)  Resource Conservation and Recovery Act
C)  Toxic Substances Control Act
D)  Comprehensive Environmental Response Compensation and Liability Act

Question 11

Real estate taxes represent the largest single source of revenue for a large portion of local governments.Most property taxes are applied in relation to the value of the property,or in other words,they are:

Accepted Answer

A)  effective tax rates
B)  ad valorem taxes
C)  tax-exempt
D)  regressive

Question 12

Development taking place in rural areas well beyond the urban fringe is commonly referred to as:

Accepted Answer

A)  urban sprawl
B)  holdout
C)  urban service areas
D)  homestead

Question 13

Given the following information,calculate the effective tax rate expressed in mills.Market value of property: $280,000,Assessed value of property: 50 % of the market value,Exemptions: $2,000,Annual tax liability: $4,685.10.

Accepted Answer

A)  1.69 mills
B)  3.35 mills
C)  16.73 mills
D)  33.95 mills

Question 14

Given the following information,compute the property tax rate for the community in percentage terms.Total budget expenditures: $108 million,Total non-property tax income: $50 million,Total assessed value of all properties: $2 billion,Total exemptions: $550 million.

Accepted Answer

A)  2.5%
B)  4.0%
C)  10.0%
D)  12.0%

Question 15

A developer plans to place a subdivision slightly outside the city limits in an area that is rapidly developing.However,the city claims to have the right to control urban development even in the proposed area.The right the city is attempting to invoke is referred to as:

Accepted Answer

A)  extraterritorial jurisdiction.
B)  urban service area.
C)  comprehensive plan.
D)  growth constraint.

Question 16

Eminent domain is the right of government to acquire private land,without the owner's consent,for public use,with due process and just compensation.The legal procedure for exercising the right of eminent domain is referred to as:

Accepted Answer

A)  Growth restriction
B)  Urban sprawl
C)  Blighted development
D)  Condemnation

Question 17

In order for the board of adjustment to approve a variance,all of the following conditions must be met EXCEPT:

Accepted Answer

A)  The owner must be unable to use the lot as zoned.
B)  The condition is common to other parcels of land in the vicinity
C)  The variance must not materially change the character of the neighborhood.
D)  The condition is unique to the lot.

Question 18

In the state of Florida,for example,homeowners may qualify for a tax exemption in which up to $50,000 will be deducted from the assessed value of the property before taxes are calculated as long as the property owner occupies a home as the family's principal residence
And has claimed residency within the state.This exemption is better known as the:

Accepted Answer

A)  ad valorem exemption
B)  affordable housing exemption
C)  growth moratorium
D)  homestead exemption

Question 19

Given the following information,compute the taxable value for the particular piece of property in dollar terms.Market value of property: $500,000,Assessed value of property: 85 % of the market value of the property,Exemptions: $50,000,Taxes paid: $8,250.

Accepted Answer

A)  $75,000
B)  $375,000
C)  $416,750
D)  $425,000

Question 20

Growth management laws at the state level require local jurisdictions to plan for and meet certain requirements.One such requirement prohibits local development unless adequate infrastructure,schools,police/fire protection,and social services have been put in place first.This requirement is referred to as the:

Accepted Answer

A)  economic and environmental impact requirement
B)  concurrency requirement
C)  affordable housing requirement
D)  extraterritorial jurisdiction requirement

Exam 4: Government Controls and Real Estate Markets